ECONOMY: Fitch also raises Cyprus credit rating to investment grade

Fitch is the second international ratings agency to elevate Cyprus' credit rating back into investment grade more than five years after a banking crisis drove it to the edge of bankruptcy.

Fitch said that high fiscal surpluses above 2% of gross domestic product until 2020, coupled with robust economic growth reaching 4% and 3.9% of GDP this year and next respectively were key reasons for the rating upgrade by one notch to BBB-.

It also cited steps taken to reduce the banking system's significant bad debt load including Hellenic Bank's takeover of the troubled Cyprus Cooperative Bank. Fitch is also confident Cyprus’ public debt will remain on a downward trajectory.

Standard & Poor's was first to bring Cyprus out of junk status and back onto the lowest rung of investment grade last month.